Announcement PDF ASX Announcement – 20 July 2015 FURTHER HIGH GRADE ZINC ASSAYS FROM PORTE-AUX-MOINES Further assays received from historic drill core at the Porte-aux-Moines VMS deposit within the Merléac exploration licence. A number of high grade intersections generated in second hole PAM16 including 19.5 metres @ 6.5% zinc, 1.0% lead, 1.3% copper, 94.5 g/t silver, 1.0 g/t gold from 301.5 metres (zinc equivalence of 15.3% Zn Eq). 7 metres @ 6.0% zinc, 1.2% lead, 1.6% copper, 133.7 g/t silver, 1.4 g/t gold from 329 metres (17.5% Zn Eq) Includes an intercept in excess of 20% zinc equivalent within the broader mineralised zone 6.5 metres @ 9.3% zinc, 1.9% lead, 1.5% copper, 142.9 g/t silver, 1.4 g/t gold from 304.5 metres (21.4% Zn Eq) Work continues to confirm the potential economic significance of the deposit. Assays will contribute to the calculation of a 2012 JORC compliant Resource, planned for completion later this year. Final drill hole (PAM8) is currently at ALS for assaying. Variscan Mines Limited (ASX: VAR) is pleased to announce its wholly owned subsidiary Variscan Mines SAS has received further encouraging base and precious metal assays from sampling of historic diamond drill core from the Porte-aux-Moines volcanogenic massive sulphide (VMS) deposit in Brittany, France. High grade zinc-lead-copper-silver-gold intervals within massive sulphide horizons were recorded in the second of three historic holes to be sampled. The results continue to confirm the high grade nature of the deposit and the quality of the previous exploration work completed by the BRGM. The new assays also provide strong evidence that a robust JORC compliant resource estimate can be generated for the deposit once further assays are received and additional geological work is completed. ASX Code: VAR Web - www.variscan.com.au Recent work and new assays Recent work by Variscan Mines at the Porte-aux-Moines VMS deposit within the Merléac exploration licence has included logging and sampling of three remaining surface core holes drilled into the deposit as part of a nine kilometre programme conducted by the BRGM (Bureau de Recherches Géologiques et Minières - the French geological survey) during the late 1970s. On 19 May 2015 the Company announced that it had received assays from ALS Geochemistry for the first of the drill holes sampled, PAM5 which recorded a number of outstanding, high grade, zinc-dominant, polymetallic intersections. The Company has now received assays for the second of the drill holes, PAM16 (Figures 1 and 2) which was drilled near the centre of known mineralisation, approximately 50 metres up dip and to the west of the PAM5 intercepts. Within the massive sulphide zone a number of high grade intersections have been recorded including 19.5 metres @ 6.5% zinc, 1.0% lead, 1.3% copper, 94.5 g/t silver, 1.0 g/t gold from 301.5 metres 7 metres @ 6.0% zinc, 1.2% lead, 1.6% copper, 133.7 g/t silver, 1.4 g/t gold from 329 metres 2 metres @ 5.8% zinc, 1.7% lead, 1.0% copper, 143 g/t silver, 1.9 g/t gold from 348.75 metres Within the first, thick intersection a higher grade zone has been defined as follows 6.5 metres @ 9.3% zinc, 1.9% lead, 1.5% copper, 142.9 g/t silver, 1.4 g/t gold from 304.5 metres These intersections can be directly correlated with those recorded in PAM5 and confirm the good interpreted continuity of the high grade zones in this area. The zinc equivalence of the high grade intersections in PAM16 are above 15% Zn Eq (Tables A and C), with calculated values up to 21.4% Zn Eq, continuing to confirm the high grade nature of the Porte-aux-Moines mineralization, a critical ingredient for the definition of an economic deposit. Table A - PAM16 ALS assay intervals From (m) To (m) Interval (m) Zn % Pb % Cu % Ag g/t Au g/t Zn Eq% 284.5 293.5 9.0 2.6 0.7 0.2 58.9 0.6 6.3% 301.5 336.0 34.5 5.3 0.9 1.2 86.0 0.9 13.1% including 301.5 321.0 19.5 6.5 1.0 1.3 94.5 1.0 15.3% including 304.5 311.0 6.5 9.3 1.9 1.5 142.9 1.4 21.4% including 329.0 336.0 7.0 6.0 1.2 1.6 133.7 1.4 17.5% 346.8 348.8 2.0 5.8 1.7 1.0 143.0 1.9 17.0% The Zinc Equivalent is based on zinc (US$2,000 per tonne), lead (US$1,800 per tonne), copper (US$5,600 per tonne), silver (US$15 per ounce) and gold (US$1,150 per ounce). The zinc equivalent calculation represents the total metal value for each metal, multiplied by a price based conversion factor, summed and expressed in equivalent zinc percent per tonne. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. Nevertheless, it is the Company's opinion that all the elements included in the metal equivalents calculation have good potential to be recovered as is commonly the case for similar VMS deposits worldwide. The zinc equivalent calculation is intended as an indicative value only. Page | 2 ASX Announcement - 20 July 2015 Figure 1 – Plan view of the surface geology at Porte-aux-Moines and BRGM core drilling showing the location of PAM16 (dotted line) and the approximate projected position of the high grade massive sulphide zones 150 metres below the surface as interpreted by the BRGM. As for PAM5, the PAM16 ALS assays are close in value to the original BRGM assays with the new assays overall generally slightly higher grade (see Zn Eq variance - Table B), confirming the accuracy and very good quality of the BRGM work. This provides high confidence in the veracity of the BRGM assays for the remaining nine kilometres of drilling and underground development. Table B - PAM16 assay comparison From (m) To (m) ALS assays BRGM assays Zn Eq variance Interval (m) Zn % Pb % Cu % Ag g/t Au g/t Zn % Pb % Cu % Ag g/t Au g/t ALS-BRGM 284.5 293.5 9.0 2.6 0.7 0.2 58.9 0.6 2.2 0.6 0.1 34.1 0.2 2.0% 301.5 336.0 34.5 5.3 0.9 1.2 86.0 0.9 5.3 0.8 1.1 84.2 0.8 0.3% including 301.5 321.0 19.5 6.5 1.0 1.3 94.5 1.0 6.7 1.0 1.2 87.3 0.8 0.8% including 304.5 311.0 6.5 9.3 1.9 1.5 142.9 1.4 NA NA NA NA NA NA including 329.0 336.0 7.0 6.0 1.2 1.6 133.7 1.4 6.4 0.8 1.5 126.9 1.3 0.7% 346.8 348.8 2.0 5.8 1.7 1.0 143.0 1.9 5.2 1.4 1.2 135.0 1.5 1.2% Page | 3 ASX Announcement - 20 July 2015 The final drill remaining to be analysed, PAM8 is now at ALS. PAM8 is located at the eastern end of known mineralisation (Figure 1) which appears to have good stratigraphic continuity to that defined in holes PAM5 and PAM16. As recorded in all three BRGM holes, the central area of Porte-aux-Moines appears to have at least two to three distinct zones of high grade mineralisation strongly suggesting the presence of a stacked mineralised system commonly found in other VMS deposits world-wide. Assays for PAM8 are expected to be received shortly and will be used to help finalise verification of the remaining BRGM assays to assist in the recalculation the Porte-aux-Moines Resource to 2012 JORC standards. The Company intends commencing resource estimation work once it has received files for the Porteaux-Moines deposit currently stored at the BRGM in Orleans. Figure 2 - Cross section through the Porte-aux-Moines deposit highlighting the ALS assays in PAM16. The geological interpretation comes from BRGM reports. Planned Work Over the next six months Variscan plans to 1. Re-assay PAM8 2. Access and digitally convert all the hard copy data held by the BRGM for Porte-aux-Moines to generate a cohesive 3D model of the deposit. 3. Complete sufficient additional technical work, including possible shallow drilling to calculate a Page | 4 ASX Announcement - 20 July 2015 JORC compliant Resource on the deposit. 4. Complete the VTEM survey over the more prospective parts of Merléac. 5. Possibly complete ground EM surveys over Porte-aux-Moines and to follow up VTEM anomalies. 6. Commence drilling in and around the Porte-aux-Moines system and possibly regionally to follow up targets generated from the geophysics. Yours faithfully .............................. Greg Jones Managing Director The information in this report that relates to Exploration Results is based on information compiled by Greg Jones, BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. Mr Jones is a Director of Variscan Mines Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Jones consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page | 5 ASX Announcement - 20 July 2015 TABLE C - PAM16 ALS RESULTS Collar co-ordinates - 260,366mE, 6,815,810mN (RGF 93 – Lambert 93) Assay Number MLCDDH00171 MLCDDH00172 MLCDDH00174 MLCDDH00175 MLCDDH00176 MLCDDH00177 MLCDDH00178 MLCDDH00179 MLCDDH00180 MLCDDH00181 MLCDDH00182 MLCDDH00183 MLCDDH00184 MLCDDH00185 MLCDDH00186 MLCDDH00187 MLCDDH00188 MLCDDH00189 MLCDDH00191 MLCDDH00192 MLCDDH00193 MLCDDH00194 MLCDDH00195 MLCDDH00196 MLCDDH00197 MLCDDH00198 MLCDDH00199 MLCDDH00200 MLCDDH00201 MLCDDH00202 MLCDDH00203 MLCDDH00204 MLCDDH00205 MLCDDH00206 MLCDDH00207 MLCDDH00208 MLCDDH00209 MLCDDH00211 MLCDDH00212 MLCDDH00213 MLCDDH00214 MLCDDH00215 MLCDDH00216 MLCDDH00217 MLCDDH00218 MLCDDH00219 MLCDDH00220 MLCDDH00222 Page | 6 from 237.70 238.70 239.70 240.70 241.70 242.70 243.70 244.70 245.70 246.70 257.00 258.00 259.00 260.00 261.00 262.00 263.00 264.00 265.00 266.00 267.00 268.00 269.00 270.00 271.00 272.00 273.00 274.00 275.00 276.00 277.00 278.00 279.00 280.00 280.50 281.50 282.50 283.50 284.50 285.50 286.50 287.50 288.50 289.50 290.50 291.50 292.50 293.50 to 238.70 239.70 240.70 241.70 242.70 243.70 244.70 245.70 246.70 247.70 258.00 259.00 260.00 261.00 262.00 263.00 264.00 265.00 266.00 267.00 268.00 269.00 270.00 271.00 272.00 273.00 274.00 275.00 276.00 277.00 278.00 279.00 280.00 280.50 281.50 282.50 283.50 284.50 285.50 286.50 287.50 288.50 289.50 290.50 291.50 292.50 293.50 294.50 interval 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Zn % 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.5 0.2 0.2 0.2 0.2 0.0 0.0 0.2 0.0 0.0 0.0 0.1 0.2 0.3 0.2 0.4 0.5 0.7 0.9 0.8 0.4 0.8 0.1 0.0 0.1 0.1 1.8 7.6 1.1 1.4 2.8 4.4 4.1 1.6 Pb % 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 0.2 0.0 0.2 0.2 0.0 0.0 0.0 0.0 0.0 0.1 3.2 0.2 0.2 0.4 1.9 0.8 0.3 Cu % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.4 0.3 1.2 0.5 0.4 0.9 0.6 0.4 0.0 0.0 0.4 0.5 0.3 0.1 0.1 0.1 0.1 0.0 0.0 0.0 Ag g/t 2.0 4.0 2.0 1.0 2.0 1.0 1.0 2.0 4.0 4.0 4.0 3.0 7.0 7.0 6.0 2.0 3.0 1.0 1.0 1.0 1.0 1.0 3.0 3.0 2.0 2.0 8.0 4.0 17.0 10.0 8.0 86.0 22.0 18.0 2.0 3.0 75.0 81.0 75.0 123.0 17.0 12.0 22.0 83.0 42.0 15.0 Au g/t 0.06 0.08 0.06 0.02 0.03 0.03 0.03 0.01 0.04 0.08 0.12 0.14 0.13 0.12 0.15 0.17 0.30 0.12 0.08 0.09 0.07 0.09 0.10 0.13 0.15 0.21 0.07 0.09 0.15 0.15 0.24 0.16 0.18 0.23 0.16 0.45 0.26 0.74 1.00 1.20 0.80 1.04 0.17 0.16 0.26 0.61 0.45 0.15 Zn Eq % 0.2% 0.5% 0.2% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% 0.3% 0.4% 0.5% 0.6% 0.9% 0.9% 0.8% 1.0% 0.5% 0.3% 0.4% 0.5% 0.3% 0.3% 0.4% 0.6% 0.8% 0.6% 0.7% 2.0% 1.7% 5.1% 2.9% 2.5% 5.4% 3.4% 2.4% 0.6% 1.6% 4.7% 5.6% 5.9% 15.7% 2.3% 2.4% 4.2% 9.3% 6.8% 2.6% ASX Announcement - 20 July 2015 Assay Number MLCDDH00223 MLCDDH00224 MLCDDH00225 MLCDDH00226 MLCDDH00227 MLCDDH00228 MLCDDH00229 MLCDDH00230 MLCDDH00231 MLCDDH00232 MLCDDH00233 MLCDDH00234 MLCDDH00236 MLCDDH00237 MLCDDH00238 MLCDDH00239 MLCDDH00240 MLCDDH00241 MLCDDH00242 MLCDDH00243 MLCDDH00244 MLCDDH00245 MLCDDH00246 MLCDDH00247 MLCDDH00248 MLCDDH00249 MLCDDH00250 MLCDDH00251 MLCDDH00252 MLCDDH00254 MLCDDH00255 MLCDDH00256 MLCDDH00257 MLCDDH00258 MLCDDH00259 MLCDDH00260 MLCDDH00261 MLCDDH00262 MLCDDH00263 MLCDDH00264 MLCDDH00265 MLCDDH00266 MLCDDH00267 MLCDDH00268 MLCDDH00269 MLCDDH00270 MLCDDH00271 MLCDDH00272 MLCDDH00274 MLCDDH00275 MLCDDH00276 Page | 7 from 294.50 295.50 296.50 297.50 298.50 299.50 300.50 301.50 302.50 303.50 304.50 305.50 306.50 307.50 308.50 309.50 310.00 311.00 312.00 313.00 314.00 315.00 316.00 317.00 318.00 319.00 320.00 321.00 322.00 323.00 324.00 325.00 326.00 327.00 328.00 329.00 330.00 331.00 332.00 333.00 334.00 335.00 336.00 337.00 338.00 343.75 344.75 345.75 346.75 347.75 348.75 to 295.50 296.50 297.50 298.50 299.50 300.50 301.50 302.50 303.50 304.50 305.50 306.50 307.50 308.50 309.50 310.00 311.00 312.00 313.00 314.00 315.00 316.00 317.00 318.00 319.00 320.00 321.00 322.00 323.00 324.00 325.00 326.00 327.00 328.00 329.00 330.00 331.00 332.00 333.00 334.00 335.00 336.00 337.00 338.00 339.00 344.75 345.75 346.75 347.75 348.75 349.75 interval 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Zn % 0.5 0.2 0.0 0.0 0.9 1.1 0.3 6.5 5.7 5.1 13.9 10.0 11.7 5.7 7.1 7.4 8.7 4.7 4.1 6.9 9.1 6.9 6.4 1.0 1.9 5.9 1.8 1.8 2.7 0.1 2.5 1.3 1.8 0.2 1.9 2.7 2.5 4.6 10.7 6.5 9.3 6.1 0.8 0.0 0.0 0.1 0.2 3.5 8.0 0.0 Pb % 0.2 0.1 0.0 0.1 0.3 0.0 0.1 0.5 1.0 2.9 2.4 1.9 0.4 1.3 1.7 2.6 0.8 0.7 0.2 1.3 1.2 0.5 0.3 0.4 0.7 0.3 0.4 0.7 0.0 0.4 0.3 0.4 0.1 0.7 0.5 0.6 0.9 2.1 1.4 1.8 1.0 0.2 0.0 0.1 0.6 2.7 - Cu % 0.0 0.0 0.1 0.1 0.1 0.3 0.3 0.5 0.8 0.6 1.1 2.2 1.3 3.5 0.8 0.8 0.6 0.4 0.8 0.8 1.1 0.9 0.9 3.5 2.8 1.0 1.8 0.2 0.2 0.5 0.3 0.8 0.4 0.0 0.5 2.7 1.3 1.5 2.1 1.3 0.8 1.7 0.2 0.0 0.1 0.8 1.2 - Ag g/t 8.0 2.0 1.0 1.0 6.0 12.0 15.0 25.0 63.0 50.0 123.0 106.0 171.0 248.0 91.0 90.0 145.0 49.0 38.0 56.0 89.0 146.0 55.0 97.0 108.0 74.0 64.0 23.0 21.0 11.0 21.0 27.0 33.0 17.0 35.0 98.0 160.0 104.0 195.0 143.0 152.0 84.0 13.0 1.0 1.0 1.0 2.0 24.0 135.0 151.0 1.0 Au g/t 0.13 0.06 0.02 0.04 0.11 0.09 0.23 0.59 0.69 1.01 1.66 1.30 1.63 1.14 1.49 1.01 1.54 0.60 0.45 0.93 1.39 0.68 0.65 1.01 0.77 0.86 0.86 0.30 0.21 0.08 0.33 0.25 0.40 0.22 0.75 1.36 0.99 1.05 1.41 1.33 1.44 2.25 0.21 0.06 0.04 0.04 0.10 0.32 1.95 1.84 0.04 Zn Eq % 1.1% 0.5% 0.2% 0.3% 1.7% 2.5% 2.0% 9.6% 11.2% 10.7% 25.6% 23.2% 24.3% 23.9% 15.6% 15.1% 18.9% 8.9% 8.6% 12.5% 17.9% 15.3% 11.9% 15.2% 14.3% 12.8% 10.1% 3.8% 4.7% 1.8% 4.7% 4.8% 4.8% 1.2% 6.0% 15.6% 12.3% 14.0% 25.7% 17.3% 19.5% 17.9% 2.1% 0.1% 0.1% 0.1% 0.3% 1.8% 13.3% 20.8% 0.1% ASX Announcement - 20 July 2015 Assay Number MLCDDH00277 MLCDDH00278 MLCDDH00279 MLCDDH00280 MLCDDH00281 MLCDDH00282 MLCDDH00283 MLCDDH00284 MLCDDH00285 MLCDDH00286 MLCDDH00287 MLCDDH00288 MLCDDH00290 MLCDDH00291 MLCDDH00292 MLCDDH00293 from 349.75 350.75 351.75 359.00 360.00 361.00 362.00 363.00 364.00 365.00 366.00 366.50 367.50 368.50 369.50 370.50 to 350.75 351.75 352.75 360.00 361.00 362.00 363.00 364.00 365.00 366.00 366.50 367.50 368.50 369.50 370.50 371.50 interval 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 0.5 1.0 1.0 1.0 1.0 1.0 Zn % 0.0 0.0 0.0 0.0 0.1 0.4 0.3 0.0 0.0 0.4 0.0 0.1 0.2 0.9 0.1 0.0 Pb % 0.0 0.0 0.2 0.3 0.0 0.0 0.0 0.1 0.1 0.1 0.0 - Cu % 0.1 0.9 0.2 0.0 0.0 0.0 0.0 - Ag g/t 1.0 1.0 1.0 3.0 15.0 6.0 1.0 2.0 4.0 1.0 2.0 4.0 7.0 3.0 - Au g/t 0.03 0.02 0.02 0.06 0.10 0.04 0.01 0.03 0.03 0.01 0.02 0.01 0.03 0.01 - Zn Eq % 0.1% 0.1% 0.1% 0.0% 0.7% 3.7% 1.2% 0.1% 0.1% 0.6% 0.1% 0.2% 0.4% 1.4% 0.3% 0.0% Bold zinc equivalent is above 4% Zn Eq Zinc equivalent calculated at Zn - US$2,000/t, Pb - US$1,800/t, Cu - US$5,600/t, Ag - US$15/oz, Au - US$1,150/oz Page | 8 ASX Announcement - 20 July 2015 JORC Code – Table 1 Section 1 - Sampling Techniques and Data Criteria Commentary Sampling techniques       Drilling techniques  Drill sample recovery   Logging Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests             Verification of sampling and assaying     Location of data points Data spacing and distribution Orientation of data in relation to geological structure         Sample security  Audits or reviews  Page | 9 Samples were taken from sawn quarter core stored at the BRGM (Bureau de Recherches Géologiques et Minières - the French geological survey) core farm in Orleans. The mineralised core size is NQ . Sampling boundaries were set according to boundaries defined in former BRGM sampling from the 1970’s. These were checked and signed off by Variscan geologists. BRGM sampling was taken at between 0.5 to 2 metre intervals. The Variscan samples were at 0.5 to 1 metre intervals. Quarter core samples were bagged and sample prepped by the BRGM and then sent to ALS Geochemistry, Ireland. Original BRGM samples were from quarter core. The new Variscan samples are mainly from the remaining quarter of the 1970’s BRGM sampling. PAM16 was collared and drilled with “PQ” diameter core to a downhole depth of some 50m before switching over to “HQ” diameter core to 200 m and then to thin wall “NQ” core for the balance of the hole. Core was not oriented. The drill core was stored in plastic trays and was logged for core recoveries. Most mineralised intercepts recorded >95% recoveries. PAM16 was logged by Variscan geologists Details were entered into the geological database Samples were collected by BRGM personnel, bagged and tagged with unique sample numbers. Sample numbers were entered against down-hole depths and sent to Variscan geologists Average weight per sample was around 2kg Samples were prepared by the BRGM Samples were dried and crushed to -2 mm Samples were then split down with riffle box to recover 100 g The sample splits were pulverized in a hammer mill to -80 µm Samples were transported to ALS Geochemistry Ireland for analysis The ALS assay method used for base metals was ME-ICPORE (multi element analysis of base metal ores and mill products by atomic emission spectrometry using inductively coupled plasma spectrometer) which uses a highly oxidizing attack designed for high grade sulphides (the sample is dissolved with HNO3 , KClO4 and HBr and the final solution in dilute aqua regia). Gold was analysed using a 30 g fire assay and AA finish (AA23). When high grade gold results were recorded, additional gold assays were completed with fire assay and a gravimetric finish. (Au-GRA21) 10% of samples were analysed as duplicates for QA/QC control. Data storage in Excel spreadsheets and GIS database. Logging and BRGM assay checks against visible sulphide mineralisation completed by Variscan geologists. ALS assays checked against BRGM assays from the 1970’s. Overall repeatability between the ALS and BRGM assays is considered very good for all elements. BRGM blanks and standards were included within the samples submitted to ALS. Samples were located within PAM16 by core blocks marking depths down hole. The PAM16 collar position and downhole surveys were provided by the BRGM. Projection and recording of data points into the GIS database into the RGF93 system. Quarter core sampling at a maximum downhole intervals of 1 metre defined by geology and previous BRGM sampling intervals. 1 to 2 metre sample compositing used for comparison work against the original BRGM samples. PAM16 was drilled from north to south at a reasonably high angle to the interpreted sub-vertical to very steeply north dipping mineralisation. Core angles of sulphide and host rock bedding were consistently high to the core axis throughout the hole providing a reasonable test through the mineralised zones. Samples were prepared at the BRGM prep facilities and transported to ALS Geochemistry Ireland by commercial carrier. There has been no external audit or review of the Company’s techniques or data. ASX Announcement - 20 July 2015 Section 2 Reporting of Exploration Results Criteria Commentary Mineral tenement and land tenure status Exploration done by other parties  Merléac PERM (Permis Exclusif de Recherche de Mine, a French exploration licence)  No known impediments for future exploration and development  Last significant exploration in area is believed to have been conducted by BRGM in the 1980s.  VMS potential of the region was recognised by the BRGM who conducted regional stream sediment programmes during the mid-1970s. The Porte-aux-Moines deposit was discovered in 1975 when follow-up soil sampling and shallow drilling intersected massive sulphides.  Subsequently the BRGM conducted substantial core drilling (+9km) and underground development on Porte-aux-Moines.  In addition, the BRGM conducted significant mapping, geochemical and geophysical programmes around Porte-aux-Moines and regionally.  Much of the exploration data is held by the BRGM and will be compiled and assessed by the Company.  Volcanogenic Massive Sulphide (VMS) deposits  Three full core holes (PAM5, PAM8, PAM16) have been accessed and logged by Variscan geologists at the BRGM core facility, Orleans.  Original BRGM logs, coordinate/downhole data and assays for PAM16 have been complied by Variscan geologists.  Additional data for other holes and underground development is to be provided to Variscan by the BRGM.  No aggregation or high grade cuts have been applied to the data reported  The orientation of PAM16 is considered a reasonable test of the high grade mineralised zones which appear to dip from sub vertical to very steeply north at the point of intersection by PAM16.  Based on the BRGM interpretation of the mineralised envelops and the core angles of sulphide layering as recorded by Variscan geologists in PAM16, the average true width of the intersections is estimated to be around +80 % of the downhole lengths  Diagrams for the Porte-aux-Moines deposit have been taken from published BRGM reports.  All samples taken are published within the report  Much of the previous exploration, mining, metallurgical and hydrological data is currently held by the BRGM and will be reported by the Company as it is accessed, complied and evaluated.  One further core hole (PAM8) is to be re-assayed at ALS and reported in a similar manner to PAM5 and PAM16  Sampling and assessment of holes PAM8  Digitising and interpretation of all data for Porte-aux-Moines deposit, including other surface and underground drill holes and underground development  Generation of 3D model of geology and mineralisation envelopes  Possible shallow drilling within Porte-aux-Moines  Generation of a JORC compliant resource estimate  VTEM Geophysical survey over mineralised lithological units, notably around Porte-aux-Moines and southern half of licence  Possible follow-up ground EM surveys to more accurately define any significant anomalies defined from the VTEM  Follow-up diamond drilling along strike and down dip at Porte-aux-Moines and on new regional targets Geology Drill hole Information Data aggregation methods Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work Page | 10 ASX Announcement - 20 July 2015